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Duncanrr
Posts: 2,843
Registered: ‎06-08-2012
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Paying on time- expected Credit score increases?

I'm going to keep GWing my 4 bad accounts but I'm not expecting them to go anywhere. SM, Cap1 and Verizon. So with scores around 640ish and 6 accounts (1 car note, 2 student loans and 3 cc), how much improvement can I expect to see in my credit score from paying on time each month? Say 5 pts a month? Anyone have experience with this? If I have no badies drop off, keep utilization under 9%, and make monthly payments where would my score be in 3, 6, 9 and 12 months. I assume the score gains will decrease as my score increases. Duncan (ps sorry for iPad formatting)


Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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Valued Contributor
Repo-ed
Posts: 2,954
Registered: ‎02-09-2012
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Re: Paying on time- expected Credit score increases?

You will not see a 5pt increase each month with on time payments, not so long as those CO remain on your file(s)

Valued Contributor
Duncanrr
Posts: 2,843
Registered: ‎06-08-2012
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Re: Paying on time- expected Credit score increases?

[ Edited ]
I only have 1 CO (Verizon) and it's paid and 3 years old. The other 3 are just late payments on account.


Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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Valued Contributor
Duncanrr
Posts: 2,843
Registered: ‎06-08-2012
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Re: Paying on time- expected Credit score increases?

So any idea what 3, 6, 9 and 12 months of on time payments would do for score? I'm trying to decide how hard I need to push my GW's.



Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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JonRun
Posts: 149
Registered: ‎04-29-2012
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Re: Paying on time- expected Credit score increases?

In the 3 months I've been working on my credit, the only increases I've seen were from lowering utilization, getting a new credit card and having charge-offs removed. It went down once when I had a new inquiry for a mortgage and once when I consolidated my student loans. I have had one late in the last 2 years and that was last October. I have 2 auto loans, 2 student loans, one Citifinancial loan and 2 credit cards.
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DaveSignal
Posts: 2,111
Registered: ‎07-29-2011
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Re: Paying on time- expected Credit score increases?

You will get an increase after the negatives age past a certain point.  It is not monthly.  Its not the accounts paid on-time that causes the increase, it is the aging of derogs and increase in AAoA (which happens once a year without applying for new credit).

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
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rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
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Re: Paying on time- expected Credit score increases?


DaveSignal wrote:

You will get an increase after the negatives age past a certain point.  It is not monthly.  Its not the accounts paid on-time that causes the increase, it is the aging of derogs and increase in AAoA (which happens once a year without applying for new credit).


Exactly.. FICO takes snapshot of what is one your report, and your score is based on an alogorithm that is created to gauge risk that you will default on a payment in the next 2 years..

 

So you are not rewarded for doing what you are supposed to be doing, and that is paying on time.

 

You will be rewarded, by default, when you have a 2 year clean history; and then further rewarded when you have no negative information.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Valued Contributor
Duncanrr
Posts: 2,843
Registered: ‎06-08-2012
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Re: Paying on time- expected Credit score increases?

Thanks for info. It seems that my score is going to be stuck at 670's for a while unless I can get a GW or two. My last late on CR is 5 months ago.


Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

Take the FICO Fitness Challenge
Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
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Re: Paying on time- expected Credit score increases?


Duncanrr wrote:
Thanks for info. It seems that my score is going to be stuck at 670's for a while unless I can get a GW or two. My last late on CR is 5 months ago.

Well, just like anything, there are so many factors... credit mixes, AAoA, util ect ect -- I am sure there are ways you can manipulate it into the 700s, I did haha

 

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Valued Contributor
Duncanrr
Posts: 2,843
Registered: ‎06-08-2012
0

Re: Paying on time- expected Credit score increases?

Is the two year point evaluated on an account my account basis or is it for my entire credit report profile? I have three late accounts. One of the will be two years no late in November and the other 2 years late in January. Should I get a bump at that point?


Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

Take the FICO Fitness Challenge

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